Corn and wheat hit multi-week lows in the US on export concerns

The futures of corn in Chicago fell to a six-week low on Friday, while the wheat it dropped to four weeks, due to concerns over competition in the global export business, analysts say.

Prospects for strong US corn production in 2023, along with other economic news, also weighed on grain futures.

On the first anniversary of the Russian invasion of Ukraine, a major grain producer, traders are hoping for an extension of the Black Sea grain deal reached last year.

The pact made it easier for Ukrainian crops such as wheat and corn to flow to global buyers and increased competition for other suppliers.

“The flow of cheap wheat from the Black Sea region has meant stiff competition for cornsaid Tomm Pfitzenmaier, an analyst at Summit Commodity Brokerage in Iowa.

The most active Chicago corn contract was down 7.25 cents at $6.52 a bushel by 1715 GMT.

Wheat was down 22.5 cents at $7.28 a bushel after touching its lowest since January 24 at $7.255.

Compared to the day before last year’s Russian invasion, wheat futures are down 18% and corn futures 4%.

In Paris, Euronext wheat fell to a month’s low on Friday, pressured by export competition from Russia and expectations that the shipping corridor from Ukraine would continue.

Chicago soybeans were also down, with the most active contract down 6 cents to $15.2125 a bushel, after touching $15.175.

USA it faces competition for export sales from suppliers of cheaper soybeans in Brazil, traders said.

US soybean export sales were 556,600 tons for the week ending February 16, the US Department of Agriculture said. Analysts had expected between 300,000 and 1.15 million tons.

Weekly export sales from the United States amounted to 418,900 tons of wheat and 848,800 tons of corn, within expectations.

Source: Reuters